New Delhi, Jan. 31 -- Finding comfort in the stock market is not easy right now. Prices have risen faster than dividends, and yields have declined across much of the market. Many stocks look fully priced, leaving investors dependent on further price appreciation.

Dividend-paying companies do not attract the same attention in such phases. They tend to be ignored when growth stories dominate the narrative. Yet, dividends do something important. They put cash in the investor's hands, reducing the need to time market cycles.

The quality of a dividend matters. It needs to come from operating cash flows, not from borrowing or one-off gains. Businesses that generate cash steadily and keep leverage under control are better placed to sustain pay...